Dropped my GR III last month! It fell out from a Ricoh GC-5 case (no wonder these have a bad reputation) for about 1 ft onto the tabletop, which broke the SR mechanism. The camera would make loud, ominous whirs and clicks with stabilization turned on.
Took it to the Ricoh Pentax repair center in Shanghai. The girl couldn't hide her surprise since many were still waiting for their copies. Picked it up 3 weeks later, which was last Saturday, gladly found it was eligible for warranty repair although it was certainly my fault.
Lessen learnt: never, ever drop yours since it's even more delicate than previous GRs. And never trust the Ricoh cases.